The Pension Fund Regulatory and Development Authority (PFRDA) has announced key amendments to the National Pension System (NPS), offering subscribers enhanced flexibility in managing withdrawals and exits. The changes, incorporated into the PFRDA (Exits and Withdrawals under the National Pension System) Regulations, 2015, aim to make retirement planning more adaptable and user-friendly.
The reforms focus particularly on non-government subscribers, including those under the corporate sector and the “All Citizen Model.” Government employees will also benefit from simplified procedures.
According to the Ministry of Finance, the amendments follow extensive consultations with stakeholders across different sectors to address their concerns and preferences.
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“The new measures give people more freedom and more choices regarding their investment decisions,” the PFRDA stated. “Since joining the NPS is a choice for people outside the government, having clear rules on how to leave or take out money is important. These clear steps will encourage more people to join and stay in the programme.”
The authority highlighted that the updates are part of its broader mandate “to promote old-age income security and protect the interests of subscribers.” By simplifying exit procedures and withdrawal rules, PFRDA intends to make the NPS more inclusive and responsive to the evolving needs of subscribers.
Subscribers can now manage their “accumulated pension wealth” more effectively across different life stages, ensuring that retirement savings remain secure and beneficial over the long term. The regulator believes these measures will strengthen confidence in the system and support wider participation.
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